Humboldt County Board of Supervisors to weigh fate of Myrtletown dispensary's permit; board had delayed ruling to allow new operators time for compliance

A conditional use permit for a Myrtletown marijuana dispensary goes back before the Humboldt County Board of Supervisors on Tuesday.

County staff is recommending that the board either revoke the permit for the Humboldt County Collective or modify the permit to allow continued operation. The collective fell under scrutiny last year after state agents raided the dispensary one day before its prior owner was arrested in Pennsylvania on suspicion of marijuana trafficking.

Since then, the dispensary's new operators, JoAnna and Collin Hammans, have been working with the county to resolve issues.

"When it first came to us for the revocation there was a lot of discussion and concern," 4th District Supervisor Virginia Bass said. "From what I've seen they've really tried to comply and really differentiate themselves from the prior operator."

Calls requesting comment from the new owners were not returned by press deadline.

The board has been considering revoking the conditional use permit since October 2012, and has continued the item twice while asking the collective to take several actions.

The Humboldt County Planning Commission voted 6-1 in June 2012 in favor of revoking the collective's permit after county staff identified deficiencies in the collective's annual monitoring report. Staff said the collective failed to comply with the conditions of its permit, including driveway improvements and proving that it's a nonprofit operation. In addition, county staff identified certain areas of concern, including high payroll expenses, unexplained costs -- such as nearly $32,700 for supplies -- and nearly $9,800 in automobile expenses.

In January, the collective had complied with many of the board's requests but was having difficulty finding a certified public accountant to audit the business.

An accounting firm since agreed to perform an audit, according to a staff report.

The board also requested that the dispensary provide a written guarantee that the collective had severed all associations with former director Bill Byron.

Byron, who was arrested in April 2012 in Pennsylvania on suspicion of marijuana trafficking, conspiracy and related offenses, were of concern to the county, had resigned from the dispensary board by May. Byron's arrest came one day after California Department of Justice agents served warrants at the Myrtletown collective, which closed down for about a month.

Third District Supervisor Mark Lovelace voted for revocation of the permit in October 2012. In addition to parking and other conditions, he said the permit called for the dispensary to follow state laws.

"Previous owners had been complicit, by all appearances, in moving product into the black market," Lovelace said. "I couldn't find a way in my mind to make that a meaningful condition."

Lovelace hadn't read the most recent staff report by press deadline Friday, but said he expected plenty of testimony at Tuesday's meaning.

"The new owners, though, have really expressed that they are trying to be very good neighbors and good citizens," he said.

Staff is recommending that the board revoke or modify the permit, changing it from a 2-year to 1-year permit and requiring bi-monthly cash and inventory counts.

Bass said she thinks a one-year permit is a good idea.

"Where I'm leaning right now is toward the modification," she said. "I haven't heard anything bad from the neighbors around there."

If you go:

What: Board of Supervisors meeting.

When: 9 a.m. Tuesday.

Where: Supervisors' chamber, first floor, Humboldt County Courthouse, 825 Fifth St. in Eureka.